Bitcoin and altcoins decline following weak economic data

Bitcoin (CRYPTO:BTC) and altcoins have experienced a 1.5% decline due to underwhelming economic developments in China. 

According to analysts, traders are now turning their attention to the upcoming Federal Reserve data for further market direction. 

The overall cryptocurrency market capitalization has dropped as weak economic indicators from China dampen investor sentiment. 

On Tuesday, following the reopening of Chinese markets after the October holidays, Bitcoin saw a drop in value, trading around $62,000 before rising to $62,700 during Asian trading hours. 

The market reversed much of the gains it had accumulated last week. 

Other prominent cryptocurrencies such as Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), XRP (CRYPTO:XRP), and BNB (CRYPTO:BNB) also faced declines of up to 4%, erasing Monday’s positive momentum. 

The total cryptocurrency market capitalization has fallen by 2.18%, reflecting the broader market’s response to disappointing expectations from China. 

Many investors had hoped for a more robust economic stimulus from the Chinese government, but these expectations were not met. 

The National Development and Reform Commission (NDRC) assured that China's economy remains stable and on track to meet its 5% growth target, but this failed to positively impact markets. 

China's largest stock index, the Shanghai Composite Index, initially rose by 4% on Tuesday but eventually erased those gains by the day’s end. 

Meanwhile, the Hang Seng index, based in Hong Kong, saw a nearly 7% drop. 

With these developments, cryptocurrency investors are now focused on the Federal Reserve's upcoming data releases, including economic growth figures and FOMC minutes. 

These reports are expected to provide further insight into the market’s next moves for both Bitcoin and altcoins. 

At the time of writing, the Bitcoin price was $62,278.88.